Browse Forums Home Finance Re: 95% LVR land loan, or alternatives 2Jan 10, 2019 9:57 am Put your financial needs in the hands of the leaders in the market. Find out why we’re the mortgage broker of CHOICE! Feel free to PM us for support or info. Re: 95% LVR land loan, or alternatives 3Jan 12, 2019 10:22 am Bobbyjack We are wishing to purchase a (private sale) block and preferably want to do it all in one hit (land and construction loan in one) but the sellers do not wish to wait around while we draw up plans and get council approval.. So is our only option get a land loan then further down the track get a construction loan? (hopefully with the same bank) Which major banks do 95% LVR on vacant land loans? Or is there another way, say doing the whole thing in one go but pending council approval or something like that.. There are a few select lenders that still offer 95% LVR on vacant land, Bankwest is one that comes to mind. It's however fraught with danger purchasing land at that high an LVR as valuations may come in short so you are stuck with getting finance (both now and when you decided to build), LMI would be expensive which most likely you will need to come out of your own funds too. Re: 95% LVR land loan, or alternatives 4Apr 17, 2019 3:07 pm How much is the minimum down payment nowadays that the bank requires for land + construction loan? I'm not a first home buyer. Is it easy to get approval with 90% LVR? Thanks Re: 95% LVR land loan, or alternatives 5May 12, 2019 1:41 pm basicbeans How much is the minimum down payment nowadays that the bank requires for land + construction loan? I'm not a first home buyer. Is it easy to get approval with 90% LVR? Thanks It all depends on how strong your overall application is. Having a 10% deposit overall (plus additional for closing costs such as stamp duty, etc) can be viable. Re: 95% LVR land loan, or alternatives 6May 13, 2019 5:14 pm plc basicbeans How much is the minimum down payment nowadays that the bank requires for land + construction loan? I'm not a first home buyer. Is it easy to get approval with 90% LVR? Thanks It all depends on how strong your overall application is. Having a 10% deposit overall (plus additional for closing costs such as stamp duty, etc) can be viable. Thanks. I think we will be able to make a deposit of 15% but would like to aim for at least 20% deposit to save on LMI. We've already paid 5% deposit for the land with the developer. So comes settlement, if we make further 15% deposit for the land, does it mean we meet the 20% deposit to save on LMI? Since we are applying for land + construction loan, when do we need to pay the 20% deposit for the construction loan? Re: 95% LVR land loan, or alternatives 7May 13, 2019 6:12 pm Construction loans use all of your money first - so you have to have the money when you're ready to settle on your construction loan. You could settle on the land at 80% and then keep saving for the construction while the plans and contract are being done - and maybe the market returns - and you have a choice of lenders then as well. If you have to settle on land + construct.... slightly different. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: 95% LVR land loan, or alternatives 8May 13, 2019 6:20 pm becjarrettdalton Construction loans use all of your money first - so you have to have the money when you're ready to settle on your construction loan. You could settle on the land at 80% and then keep saving for the construction while the plans and contract are being done - and maybe the market returns - and you have a choice of lenders then as well. If you have to settle on land + construct.... slightly different. Thanks. We will begin construction few months after land settlement but since we are applying for land + construction loans at the same time, does it mean we need to have 20% deposit upfront on both? Re: 95% LVR land loan, or alternatives 9May 13, 2019 6:24 pm No, you can have the 20% on the land, and then borrow the a higher percentage when you build if the valuation comes in low, but the whole lot is mortgage insured... Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: 95% LVR land loan, or alternatives 10May 13, 2019 6:25 pm becjarrettdalton No, you can have the 20% on the land, and then borrow the a higher percentage when you build if the valuation comes in low, but the whole lot is mortgage insured... Excellent, thanks for the information. Very helpful! The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20028 11 25039 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36518 |